One such stock that you may want to consider dropping is Sigma Designs, Inc. (NASDAQ: SIGM), which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year. A Zacks Rank #5 (Strong Sell) further confirms weakness in SIGM.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 1 estimate moving down in the past 30 days, compared with no upward revisions. This trend has caused the consensus estimate to trend lower, going from 46 cents a share a month ago to its current level of 10 cents.
Also, for the current quarter, Sigma Designs has seen 1 downward estimate revision versus no revisions in the opposite direction, dragging the consensus estimate down to a loss of 14 cents a share from 11 cents a share over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 17.3% in the past month.
So it may not be a good decision to keep this stock in your portfolio anymore, at least if you don't have a long time horizon to wait.
If you are still interested in the computer and technology sector, you may instead consider some better-ranked stocks including Advanced Energy Industries, Inc. (NASDAQ: AEIS), Bitauto Holdings Limited (NYSE: BITA) and ChyronHego Corp. (NASDAQ: CHYR). All these stocks hold a Zacks Rank #1 (Strong Buy) and may be better selections at this time.
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ADV ENERGY INDS (NASDAQ: AEIS): Free Stock Analysis Report
BITAUTO HOLDNGS (NYSE: BITA): Free Stock Analysis Report
CHYRONHEGO CORP (NASDAQ: CHYR): Free Stock Analysis Report
SIGMA DESIGNS (NASDAQ: SIGM): Free Stock Analysis Report
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